Saturday, September 27, 2014

Faced with a cacophony of payment models from fee-for-service to value
and risked based with a growing healthcare consumer looking for choice, healthcare
marketing becomes an even greater challenge than before. One size does not fit
all. And growth is good.

With the growing consumerism in healthcare, how can the hospital or health
system make good in growing and generating revenue while the chance still
presents itself? After all, the tipping point
of where a hospital is no longer a revenue center but a cost center has not
taken place yet. And it won’t for the
foreseeable immediate future.

There are three dynamic keys to concentrate on in the evolving consumeristic
driven healthcare market: Market Presence... Leveraging Opinion/Perception...
Consumer/Patient Experience...

No longer nice to have, these three basic concepts are now
business requirements.

Market Presence- The resources to effectively and continuously communicate
brand and differentiate the offering across multiple channels. This includes having
the right marketing organizational structure with the right people in the right
jobs to manage the fully integrated marketing program.

Leveraging Opinion/Perception – Social media is critical in the area. Even with all the cost, price and quality data
that is being released and consumers are learning how to use; it’s still recommendation
of physicians, family members or friends that drives a big part of the
selection process. That will change over time, but as of yet, it’s that old tried
and true ubiquitous “word of mouth” opinion/perception influencer channels that
one needs to actively manage.

Consumer/Patient Experience- The actual customer experience matches the
brand image, perceptions and opinions of customers that you created in the
marketplace that had been communicated in an integrated multi-channel sustained
effort that includes social media engagement.

A consumer-directed market is much different environment than a
provider-directed market which requires skills and abilities that may or may
not exist in an organization. Key success factors for creating a high
performance marketing operation that delivers revenue and market share in an
era of reform in the new healthcare environment include:

Vice President of Marketing senior management
position that reports to the CEO and is involved in all decision making.

Marketing resources human, operational and
capital budgets to support a multi-channel effort externally and internally.

Comprehensive strategic and measurably focused
marketing plan that is integrated with the financial and operational plan of
the organization.

Price, outcomes and experience transparency

Internal communication and training to educate
the organization around marketing efforts, expectations and their role in the
execution of the plan.

Creation of a comprehensive marketing dashboard
which communicates activities and results on a monthly basis to all levels of
the organization.

As the healthcare providers continue to consolidate across all segments,
marketing will assume an increasingly important role in the survival and
revenue generating activities for the organization.

And that requires a far different innovative sustainable marketing presence
that changes perceptions and choice than the old way of doing things.

Sunday, September 21, 2014

By living in a major metropolitan area, one has the
privilege of seeing firsthand how hospitals and health systems are approaching
the establishment of a retail medicine strategy and the healthcare consumer. Or
maybe it’s really and more appropriately, the absence of an understanding of
that particular market strategy.

As written in the past, delivering retail medicine is a
whole lot different than providing hospital outpatient services, or even building
a medical office building, launching ambulatory care center or employing
physicians.

The other day, I came across a small health systems foray
into retail medicine. It was by accident
mind you because in coming by the location literally hundreds of times and even
entering the grocery store, I never really noticed it before. The only reason I
think I noticed because of the store pharmacy curbside signs about flu shot
availability. And there has been no active marketing of the location to the
neighborhood.

So what did I see? A sign high above the awning on the side
of the grocery store with the hospital name XYZ Clinic. Jet back windows facing
the parking lot communicating more about dark secrets within than with lettering about name, hours, contact and
services. When one goes inside the store, (and the location of the retail
clinic is right next to the main entry to the store in a high traffic area) the
healthcare consumer is greeted with a closed door. No sign of anyone there except for offering a
formidable and not so much a welcoming “come on in” presence for the retail
healthcare consumer.

I did not write this description of what I saw to embarrass
the health system, but to point out what hospital and health system executives
don’t know about retail healthcare design, service delivery and marketing the
retail clinic can be deadly.

Now that being said this is one case in point. There are I am sure examples across the
country of hospitals and health systems that got it right, or nearly so. But
more often than not; well, that is for one to decide based on experience and
knowledge.

If you are going to enter the retail medicine market, here
are some rules of thumb to follow. These are offered as recommendations based
on my retail healthcare experience and are not all inclusive.

To wit:

1.This is not a hospital, MOB or an ambulatory
outpatient center. Don’t build it like
you would build it if it was a hospital,
MOB or a hospital-based outpatient center.

2.Retail medicine is about convenience,
accessibility, service and price. That means
it is convenient, easily accessible, welcoming in appearance and friendly. Exam rooms for sure but the registration and
waiting area needs to be open, visible and welcoming.

3.The healthcare consumer’s first impression and experience
is everything. It’s about them not about
the hospital or the staff. If one’s clinic appears closed foreboding and “healthcare
like” that’s a killer first impression.

4.For goodness sakes, let the healthcare consumer
or casual shopper know what you do there. What are the tests and exams
offered? What aliments do you treat? A
sandwich board can work wonders.

5.Before building a retail clinic, go around and see
how the Walgreens, CVS Health, Rite Aid etc., store clinics are designed. There is a reason they are designed that way
and it’s not by accident. Learn from you competition.

6.Do the market research. Understand the
demographics of the neighborhood. Understand the healthcare consumer’s needs
and build the retail clinic with those needs in mind. Don’t guess!

7.Figure out the service area for the clinic. If there is a well established retail clinic
less than two miles away from the chosen site, guess what? It’s probably not
going to work or be profitable. This is retail and competition is unforgiving,
as is the consumer. That pharmacy based
retail clinic down the street has been there longer than you, has established a
market presence, is user friendly and customer focused. It’s arrogant to think that by simply putting
the hospital name on the clinic will make a difference. The healthcare consumer doesn’t care.

8.Be prepared to market the daylights out of the
clinic. Again as a reminder this is
retail. The marketing rules are different.
Presence in the market builds preference. No continuous marketing presence,
no preference for what you have to offer.

These are just some of my rules of thumb for establishing a
retail medicine presence. Not perfect and not all encompassing, but a simple
start offered for consideration.

Healthcare is evolving into a semi retail model of care and
service delivery. A model that is about
the healthcare consumer built around their needs that is accessible,
convenient, priced right and provides a consumer experience that is second to
none.

Make it look like what one does like everything else in the
hospital and it’s a loser.

Saturday, September 13, 2014

As the reformation of healthcare
continues unabated, a hospital or health system has only five primary markets.Of course, there are the submarkets within
these markets but it’s still only five: Commercial; Exchanges; Medicare; Medicaid;
and Uninsured.

The new dynamic added to
this change is the evolution of the broader healthcare market into a
consumer-centric, semi-retail market existing in a multitude of reimbursement
schemes, each nuanced for a different market segment. Leading to the question,
have you identified from a marketing perspective immediate actions to improve market
position and revenue generation?

This isn't about massive
advertising campaigns, gimmicks, wellness programs, etc. It’s more about
getting the basics right, understanding who pays for what and how that is combined with
the needs of your healthcare consumers. This isn’t only about driving demand in
some cases, but managing demand by moving the healthcare consumer to the right
setting, which may not be the hospital or a hospital based outpatient service. In
some circumstances it may even mean de-marketing certain services.

Consumers and patients
are ready for convenient technology-enabled access to care. Healthcare
providers that are capable of identifying their needs and how they want their
healthcare needs meet though technology focused on them will gain new patients
and the next-generation of physicians.
It's not a crime to use text messaging to send people information or
confirmations about appointments, health reminders, or use QR codes to link to
specific education or health offers.

2. Engage existing
customers and patients.

An individual is only a
patient 1/3rd of the time they come in contact with you. That is during the diagnosis, treatment and
recovery phase. Pre and post this experience,
they are a healthcare consumer not a patient.
So why then is it the only time one chooses to meaningfully engage them
is during the period when they are a patient?
This lack of focus or tactical engagement execution doesn’t make a lot
of sense as consumer and patient engagement is about all of the time activity,
not just some of the time. Engaging the healthcare
consumer on a continuous basis builds loyalty and importantly keeps them in
network, which has some pretty significant financial ramifications in a risk-based
reimbursement model.

3. Engage the
physicians.

No matter the payment
model the hospital or health system still needs a physician or physician
extender’s order to get anything done in a healthcare setting. That means
engaging physicians in meaningful ways, using the methods, technology and
systems that will make their life easier, improve their productivity and
protect or increase their income. An effective and efficient physician has more
to do with the impact of cost and quality in the hospital than any other factor.

4. Focus on the physician
experience.

How hard is it for a
physician or physician extender to practice medicine in your organization? Have you looked at the hassle factor that physician’s
encounter when they try to get things done in the hospital setting? Understand how the physician experiences your
organization at every touch-point they encounter the hospital. Understand their
experiences overall from beginning to end, not just in an isolated segment. Fix
what is broken, keep what is working. The more satisfying the experience, the
better you will do financially.

5. Focus on the
consumer/patient experience.

A healthcare provider's
ability to deliver an experience that sets it apart in the eyes of its patients
and potential patients from its competitors - traditional and non-traditional -
serves to increase their loyalty to the brand. One needs to actively manage the
customer experience in totality by understanding the customer's point of
view. That is, all touch points
internally and externally that a customer/patient comes in contact with which
in turn creates the experience. Exceptional experience means gains in market
share, brand awareness, and revenue.

6. Embrace retail
healthcare.

Traditional ways of
delivering healthcare will go by the wayside in many cases. Price convenience, access and outcomes are
the drivers in retail healthcare. Find
the need, understand the consumer’s behavior drivers, design offering around
the consumer not the hospital in a convenient location and price it
appropriately. If you can't compete in this way market position, share and revenue
will erode.

7. Turn to social media
and networks to engage, manage the experience and drive adherence. As
healthcare continues the evolution to a healthcare consumer dominated
semi-retail environment, social networking is a healthcare marketing channel
that is underutilized and underperforms today, but holds great potential to
improve engagement, experience and adherence. And that takes healthcare
marketing leadership, executive vision and meaningful action.

Seven step
to achieve market and revenue growth in an evolving healthcare market place.
Not an impossible task, but one that does require focus and a willingness to
break from the past.

The headline question is one that hospitals and health systems
can no longer ignore with pejorative and condescending answers, or even silence
to the questions of hospital prices. When physicians turn on those organizations
it moves from a healthcare consumer complaint to PR crisis.

Hide the head in sand and pretend it’s all just going away, but
guess what- it’s not. And it is maybe like
one step away from a hospital or health system public relations crisis.

If you haven’t read the WSJ article, I recommend that you
read it. It’s a classic example of how
not to handle the pricing issue. Doesn’t matter if it’s a physician, the media or
a healthcare consumer that is calling for they are all equally important.

Here is what an organization needs to do to be ready for the
negative PR:

1.Admit one can’t win this argument. Develop,
refine and have in place a media plan from the point of limiting the damage to
your hospital brand and reputation as much as possible.

2.In preplanning understand the hospital or health
system pricing compared to area competitors.
Don’t compare to hospitals or health systems across the country.

3.Be prepared to explain up coding. Matter of fact
this is probably a good time to start reviewing your coding and billing practices
to make sure that all applicable regulations are being followed before you add
some charges like the trauma team.

4.Don’t send out the billing manager or director
of Finance out to answer media questions.

5.Prepare Q&As and practice.

6.Don’t answer it’s all the insurers fault. We don’t
really charge those prices. The consumer will never understand because it’s so complicated.

7.Never ever reference the charge master.

8.When a clear billing mistake has been made,
admit, rectify and apologize.

9.Have the CEO briefed, media trained and ready to
face the press.

10.Answers to questions that come off as pejorative,
condescending or arrogant are unacceptable.

11.Treat this as a full blown PR communications
crisis. Failure to do so will lead to mistakes and making it worse not better.

Pray it doesn’t happen that the pricing issue is raised by someone
who knows what they are talking about. The hospital or health system can’t win
this one, but limit the damage to reputation and brand you can.